TNAG-0133-FCO40-169-Tariff-preferences-for-developing-countries-1969 — Page 96

CONFIDENTIAL

On this beais, once the above mentioned limits were reachog:

for sensitive products, preferential entry would be halted Lutonatically

Es soon as the teriff quota was fulfilled;

for non-sensitive products, proference would be susponded at the request

of a member state as soon as the predetermined ceiling was reached.

In addition it has been indicated, that for producte not initially on

the list of senzitive products which might give rise to difficulties

after the entry into force of the preferential system, a decision right

be taken:

advice -to subject them to a syete of e.ntrol by means of decisions de prior

to import tior;

to transfer them to the category of sensitive products subject to túriff

quotes.

b) Diath:ction betheen developing countries

The delegations strutsed the actirability of providing for the

Sorelbility of excluding one or more developing countries from the benefit

of preference in respect of products in which they have become particularly

competitive.

Such ection for excluɛion would be taken if a danger were observed

of such country or countries monopolising the triff quote or predetermined

ceiling to the detriment of other less competitive developing couniiies. In this point & proposed we made that imports from a beneficiery country

cxcceding 50% of any quote or ceiling should be excluded from preferential

treetrent.

c) Other safeguard rocedures

"The Italian delegation drew attention to the necessity of formulating

special ma cures allowing swift action to be talan (even before the

predetermined ceing were reached) in exceptional and unzorstœble

circumstances to avert serious diɛruption of the market. The delogɛtion

considered that to this end a general safeguard diruse should be included

in addition to the messures indicated in a) (nd b) above.

CUPIDEMIAL

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